Strategic challenges for the European banking industry in the new millennium

Joseph G. Nellis (Professor, Economics Group, Cranfield School of Management, Cranfield University, Bedford, UK)
Kathleen M. McCaffery (Lecturer, School of Business, Retail and Financial Services, University of Ulster, Coleraine, Northern Ireland, UK)
Robert W. Hutchinson (Professor, School of Business, Retail and Financial Services, University of Ulster, Coleraine, Northern Ireland, UK)

International Journal of Bank Marketing

ISSN: 0265-2323

Publication date: 1 April 2000

Abstract

Completion of the European Single Market Programme in Financial Services has, as expected, set in motion a rationalisation process within the European banking industry, as banks respond to increasing competitive pressures that are having a dampening effect on their traditional business margins. Assesses the importance of these developments in the context of the policy options that are open to the European banking community in the new millennium. In particular, given the prospect of an integrated European economy, now commonly referred to as Euroland, the paper addresses, as its central theme, the potential for the development of pan‐European banks that would then be in a position to configure longer‐term globalisation strategies. Evolution in this direction, if it occurs, is important from a European Central Bank policy perspective, since it would raise systemic risk issues if a small number of European licensed banks became “too big to fail”. We conclude, however, that the most prominent strategic response is likely to be based on the European “regionalisation” of banks and markets rather than pan‐Europeanisation.

Keywords

Citation

Nellis, J.G., McCaffery, K.M. and Hutchinson, R.W. (2000), "Strategic challenges for the European banking industry in the new millennium", International Journal of Bank Marketing, Vol. 18 No. 2, pp. 53-64. https://doi.org/10.1108/02652320010322967

Publisher

:

MCB UP Ltd

Copyright © 2000, MCB UP Limited

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